how do i report servers not claiming their tips?

Answer 1

SNITCHES GET STICHES THAT'S WHAT I'VE HEARD. WHY DO YOU WANT TO TELL? MAYBE THOSE TIPS ARE THE DIFFERENCE BETWEEN FEEDING A CHILD AND GOING HUNGRY.

Answer 2

Considering what they make an hour, why would want to report them? That's almost like taking the last piece of bread out of a starving man's hand.

I'll admit, when I was a waitress, I didn't report all of my tips either. Why? First, I only made 2 dollars an hour tips aside. Also, I got the blame for everything. If you were my cook and decided to take a 30 minute smoke break instead of getting my table section meals out on time, it's automatically my fault and I lose my tips. It could be anything, but the point is most often what angered the customer was not my fault. But yet, that's my livelihood at stake, and bills that may not get paid that week because others were having a bad night. So yes, some nights I didn't claim everything. I did what I had to do.

Don't be so hard on them.

Answer 3

You could find someone at the IRS after much effort but I wouldn't bother. The most that would happen (doubtful it would get that far) is they would send a letter to the business suggesting that they encourage their employees to claim tips.

Then the employer would maybe start taxing charge tips or do an automatic claim of %8.00 of sales on EVERYBODY. The %8.00 is the IRS benchmark.

A business owner would not be reporting individual employees as there are other ways to handle it. Because there would be to many ways to lose money if the IRS really went to town.

So if you are a coworker you would lose. If you are a customer why would you care? Either way whatever the issue is it needs to be addressed in a different way. Tips are not the issue.

Answer 4

Assuming you're a restaurant manager or supervisor? And I assume you mean "claim" that as income on their taxes?

Two ways to do so, consult your CPA before implementing either.

1) ASSUME 12% of all receipt is tip, divide by percentage of what each server has worked in the pay period. And just include that as "assumed tip income" on their payslip, then deduct all the necessary taxes and such from their regular pay. This is guaranteed to tick off just about everybody, so you better have your CPA come and explain this to everybody, perhaps even an IRS guy to come explain on why this is necessary.

2) Call those servers into your office and tell them that if they don't claim their tips properly on their deductions, you'll have no choice but to add the numbers to their next paycheck as "tip -- cash already received" or whatever as you'll have to do it for them as NOT to get into trouble with the IRS. THEN the IRS will likely note the new numbers and audit them.

Again, consult your CPA and/or labor law for proper advice.

EDIT: If you're NOT in restaurant management, don't bother. It's none of your business. It's management's business.

EDIT2: Mugatu, regardless of what you think, the current US tax law says tips are taxable (http://www.irs.gov/newsroom/article/0,,id=106783,00.html) and must be recorded down to the penny every day and employer must be informed at least monthly regarding tip income so they can be properly taxed and deducted.

Answer 5

You really shouldn't worry about it. The government assumes that servers are making 8% of their total sales and are automatically taxed on it (it is taken out of their checks). Even though most servers "hope" that they will come out with 15% of their total sales at the end of the day, it usually doesn't work that way. Even if they do, they still have to tip their busboy, bartender and where I work, the expo (the person that makes sure that all the orders are correct before you take the plates to the table). So the server doesn't usually end up with more than 8% of their total sales anyway.

Answer 6

That is not your problem so leave it to the individuals and the company they work for. How about doing research of how multinational conglomerates get away with underemployment and underpay while the Board of Directors gain more compensation ? Go for the big things in life forget this situation since it is petty.

Do you want to awaken your adventurous mind and become aware ?

Answer 7

You record your finished tips won and any tip-outs on your employer. you're taxed on your internet tips, inspite of the undeniable fact which you're able to record tip-outs on the time which you paid them. you're able to shop a checklist of who the top-outs have been paid to. in case you fail to record the top-outs on the time which you pay them, you may not deduct them later. it fairly is all or no longer something on the time which you record the tips and tip-outs. "be conscious:I do contain my funds tips..." do no longer even think of of going there! you're required by regulation to record ALL tips. era! if your employer is telling you to record much less, he's violating the regulation. in case you pass alongside with it, you're as responsible as he's.

Answer 8

You don't. Tips should not be taxed in the first place. (If I had to claim my tips, when I was working for tips, I would have "never" received any.)

Answer 9

How would you know that they are in fact not claiming their tips? Sooner or later it will catch up with them. I would recommend you keep yourself out of it, to avoid any problems for yourself.

Answer 10

I'm sorry you don't have a life with nothing better to do with it.Remember what goes around,comes around.